Unlocking BC’s North Coast: A $139.5 Million Boost for Clean Energy

The vast, resource-rich landscapes of British Columbia’s North Coast are on the cusp of a transformative change. For decades, the region’s immense potential for clean economic growth has been constrained by a critical piece of infrastructure: a reliable, modern electrical grid. Today, a significant step has been taken to bridge that gap. The Canada Infrastructure Bank (CIB) has announced a landmark $139.5 million loan to BC Hydro to fund the crucial early works for the North Coast Transmission Line. This investment isn’t just about power lines; it’s about powering futures, enabling industry, and accelerating Canada’s clean energy transition.

Bridging the Gap: The North Coast Transmission Line Project

The North Coast region, encompassing communities like Terrace, Kitimat, and Prince Rupert, is a powerhouse of Canadian industry and natural beauty. It’s home to ports critical to global trade, vast forests, and a workforce ready to build the future. However, its electrical infrastructure has not kept pace with its ambitions. The existing transmission line, built over half a century ago, is reaching its capacity, limiting new industrial connections and the integration of renewable energy.

The proposed North Coast Transmission Line is the solution. This project aims to build a new, robust 287-kilovolt transmission line running approximately 100 kilometers from the existing Skeena Substation near Terrace to a new substation in the Kitimat area. Before the main line can be constructed, essential preparatory work—the “early works”—must be completed. This is precisely where the CIB’s strategic investment is targeted.

What the $139.5 Million “Early Works” Investment Entails

The CIB’s loan is a catalyst, funding the necessary foundational activities that de-risk the larger project and prepare the ground for construction. These early works are multifaceted and critical:

• Route Finalization and Permitting: Conducting detailed engineering, environmental studies, and finalizing the exact pathway for the new line in consultation with First Nations and local communities.
• First Nations Collaboration and Partnerships: Advancing meaningful participation and partnership opportunities with First Nations, whose territories the line will traverse, ensuring shared benefits and stewardship.
• Site Preparation and Access: Building and upgrading hundreds of kilometers of access roads, clearing rights-of-way, and preparing substation sites.
• Procurement and Planning: Securing major equipment like towers and conductors, which have long lead times, and finalizing construction plans.

By financing these upfront activities, the CIB is helping BC Hydro manage initial costs, maintain project momentum, and pave the way for a smoother, more efficient construction phase for the main line.

More Than Megawatts: The Transformative Impact of the Project

The significance of the North Coast Transmission Line extends far beyond the electrical grid. It serves as a foundational enabler for a cascade of economic and environmental benefits for British Columbia and Canada.

Fueling Clean Economic Growth and Job Creation

A modern, high-capacity transmission line is the backbone for industrial expansion. This project directly supports:

• Liquefied Natural Gas (LNG) and Other Industries: It will provide the stable, substantial power required for operations like the LNG Canada facility in Kitimat and future phases, which aim to export cleaner Canadian natural gas to global markets, displacing higher-emission fuels.
• Port Electrification: Enabling the electrification of port operations in Prince Rupert, reducing diesel use and cutting emissions from a vital trade gateway.
• Mining and Technology: Powering future critical mineral mines and potential data centers, attracting new investments to the region.
• Thousands of Jobs: Creating employment during both the early works and main construction phases, providing opportunities for local and Indigenous workers.

Accelerating the Clean Energy Transition

This project is a cornerstone of BC Hydro’s CleanBC and federal climate goals. Its environmental impacts are profound:

• Enabling Renewable Integration: The new line will have the capacity to connect future renewable energy projects, like wind and hydro, to the grid, helping BC meet its legislated target of 100% clean electricity by 2030.
• Displacing Diesel Generation: It will reduce the reliance on expensive, carbon-intensive diesel generators used by some remote communities and industrial operations, improving air quality and lowering greenhouse gas emissions.
• Electrifying Industry: By providing clean grid power, it allows major industries to switch from fossil-fuel combustion to electricity, significantly reducing their carbon footprint.

Strengthening Community and Indigenous Partnerships

A project of this scale is being developed with a commitment to reconciliation and shared prosperity. The early works phase emphasizes:

• Deep Consultation: Ongoing, meaningful engagement with First Nations whose traditional lands are affected.
• Economic Participation: Creating opportunities for Indigenous businesses through contracts, procurement, and capacity building.
• Long-Term Benefits: Establishing frameworks for lasting partnerships and revenue-sharing that ensure communities benefit from the development in their territories.

The CIB’s Role: Financing Canada’s Infrastructure Future

The Canada Infrastructure Bank’s investment in this project exemplifies its mandate to attract private and institutional capital to projects that are in the public interest. By providing patient, low-cost debt financing for the early, risky stages of the project, the CIB is acting as a catalyst for critical infrastructure that might otherwise face delays. This loan aligns perfectly with the CIB’s “Green Infrastructure” investment priority, focusing on projects that support renewable generation, grid modernization, and the transition to a low-carbon economy.

Looking Ahead: A Connected, Clean-Energy Future for BC

The $139.5 million loan for the North Coast Transmission Line early works is more than a financial transaction; it’s the first decisive move in a much larger game. It signals confidence in the future of British Columbia’s North Coast and a tangible commitment to building the infrastructure needed for a sustainable 21st-century economy.

As the early works progress—finalizing routes, building partnerships, and preparing the land—the vision of a fully energized North Coast comes closer to reality. This project promises to unlock a future where industrial growth and environmental stewardship go hand-in-hand, where Indigenous communities are true partners in prosperity, and where clean, reliable power fuels not just homes and businesses, but the next chapter of British Columbia’s story. The switch has been flipped on a brighter, more connected, and cleaner future for all.